Question

With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act)’, consider the following statements:
1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Which of the statements given above is/are correct?

• A. 1 only
• B. 2 only
• C. 1 and 3 only
• D. 2 and 3 only

Answer 1

The correct option is B 2 only

Benami Transactions (Prohibition) Amendment Act, 2016, defines a benami transaction as a transaction where a property is held by or transferred to a person, but has been provided for or paid by another person,the transaction is made in a fictitious name,the owner is not aware of denies knowledge of the ownership of the property,the person providing the consideration for the property is not traceable. The act establishes four authorities to conduct inquiries or investigations regarding benami transactions and also has provisions for an Appellate Tribunal.